Global Software-defined Data Center market is projected to grow at a CAGR of 21.65% during the forecast period, reaching a total market size of US$159.514 billion in 2025 from US$49.214 billion in 2019. The demand for software-defined data centers is increasing due to the increasing demand for more flexibility in data center infrastructure along with increasing demand for storage space, computing power, and complex networking. A software-defined data center (SDDC) is a data center where the entire infrastructure is virtualized and delivered as a service. The demand for software-defined data centers is also increasing as it provides a solution to support both legacy enterprise applications and new cloud computing services. The market is even being driven due to the rapid growth of colocation and cloud data centers across the world due to the increase in usage of cloud computing and advancing technologies which is driving with it the demand for software-defined data centers. The software-defined data center market growth is also attributed to the cost reduction factor as it helps businesses to not purchase hardware, or acquire vendor-specific skills to maintain and operate it and even to manage upgrades to physical machines. Increasing security threats that involve loss of critical information can be seen affecting the market growth of these data centers. These virtualized data centers help in running applications on the network for creating, provision, and deploying network resources in real-time adding or removing switches, routers, and servers as the need arises. As data centers require larger space for increasing storage, networking, and computing with efficient operation and management solutions, it is adding to the capital cost for data center owners along with increasing the operational costs and making data centers more complex to manage. The software-defined data center market has been segmented based on solution, end-user, and geography. By solution, the market has been segmented into Software-defined Networking (SDN) and Software-defined Storage (SDS). By the end-user, the market has been segmented into colocation providers, cloud providers, and enterprises.
The software-defined network has a notable market share in the software-defined data center market. The market growth in this segment is majorly attributed to the increasing need for better connectivity around the world as connecting enterprise branches, clients, and vendors through a virtualized network will provide businesses with better access to resources and wider reach. The software-defined data center market is also growing due to the exponential growth of big data in the communication and technology industry. The software-defined storage also holds a significant market share in software-defined data centers due to the continuous increase in data generation worldwide on account of the increasing digitization of business functions and increasing overall internet penetration. The software-defined storage is providing more virtual and scalable storage space for enterprises-owned data centers, cloud data centers, and colocation data centers thus supporting their revenue generation strategies. The increase in usage of software-defined network and storage is due to a reduction in cost, lower time to service delivery, and better flexibility, scalability, and management of multiple infrastructures at once.
Colocation providers have a significant share in the market due to access to virtual space
By the end-user, the software-defined data center market has been segmented into colocation providers, cloud providers, and enterprises. Colocation providers and cloud providers together hold a significantly large market share. These vendors are showing a continuous increase in the demand for software-defined data centers for reducing their costs and increasing their virtual space for providing their clients with more storage space and better networking solutions. The demand for software-defined data centers is also increasing on account of the generation of huge volumes of data every day, which is driving with it the demand for quicker access to big data which is provided by software-defined data centers through virtualization and cloud technology, and by using advanced data managed solutions that help in monitoring and creating a backup of huge datasets. Enterprises are expected to continue holding a significant market share in the software-defined data center market over the forecast period. The increasing demand for storage space, better networking, and security are making enterprises move towards using software-defined data centers for higher efficiency and cost-effectiveness.
By geography, North America has a notable share in the market
Regionally the software-defined data center market is classified into North America, South America, Europe, the Middle East, and Africa, and the Asia Pacific. North America, being an early adopter of new technologies, holds a significantly large market share in the software-defined data center market on account of the presence of a large number of market players and end-user companies which are drifting continuously towards artificial intelligence, big data, and augmented reality for improving technology and providing better services to their customers. This requires them to have efficient software-defined data centers that can streamline their operations along with reducing costs. The Asia Pacific software-defined data center market is expected to witness solid market growth owing to rapidly increasing industrialization increasing inflow of investments by major players across industries into this region. The market in Europe and the Middle East and Africa (MEA) is anticipated to show significant expansion over the projected period on account of rapidly increasing adoption of cloud computing and the presence of some of the major market players, which cater to diverse demands from end-users by offering them tailored solutions, in these regions.
Market Players and Competitive Intelligence
Key Developments
| Report Metric | Details |
| Market size value in 2019 | US$49.214 billion |
| Market size value in 2025 | US$159.514 billion |
| Growth Rate | CAGR of 21.65% from 2019 to 2025 |
| Base year | 2019 |
| Forecast period | 2020–2025 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Solution, End-User, And Geography |
| Regions covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies covered | Hewlett Packard Enterprise, Citrix Systems, Dell Inc., DataDirect Networks, Oracle Corporation, Cisco Systems, Inc., NEC Corporation, Fujitsu, IBM, Big Switch Networks, Inc., VMware Inc., Nexenta |
| Customization scope | Free report customization with purchase |
Segmentation
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